US stocks fluctuated near record highs as rising inflation expectation worries took hold once again. US producer prices rose by 1.0% m/m in March, up from 0.5% in February, exceeding market expectations. The 10yr US Treasury yield gained ground and the dollar strengthened. Joe Biden has proposed boosts in funding to combat inequality, disease and climate change as part of the $1.52tr 2022 budget. Meanwhile, ECB policymakers step up their warnings to not delay the joint fiscal stimulus. In China, producer prices climbed the most since July 2018 in March, adding to worries about rising inflation.
LME sentiment was weak today as protracted selling pressure gripped the market as dollars gained after the producer price report. Nickel lost the most ground, after failing through the support at $16,650 /t and closing at $16,628/t. Aluminium broke back below $2,270/t and found support at $2,255/t to close at $2,264/t. We saw protracted selling pressure cause the copper market to close below at $1,978.50/t; the cash to 3m spread has widened out to $10.00/t. Lead and tin prices also closed lower today at $1,978.50/t and $25,755/t, respectively.
Oil futures fluctuated once more as inflation worries mute demand expectations. WTI and Brent edged down to $59.49/bl and $63.08/bl. Precious metals were mostly lower, with gold and silver falling to $1,744.82/oz and $25.24/oz respectively.
All price data is from 09.04.2021 as of 17:30